ONO token utility and design

🪙 ONO Token – Overview

The ONO token is a blockchain-based utility token used within Onocoy to:

• Reward contributors (miners, validators)

• Enable access to correction data (via conversion to data credits)

• Participate in governance (voting on protocol changes, funding, etc.)

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🎯 Utility of the ONO Token

Use Case	Description
🏗 Incentives	Paid to reference station operators (miners) and validators as base and usage rewards.
📡 Data Access	Swapped for data credits, which are used to access GNSS correction data streams.
🗳 Governance	Token holders participate in voting via square-root governance, influencing future network decisions.
💼 Ecosystem Development	Part of the token supply funds development, operations, and ecosystem incentives.

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🔄 Token Model: Burn-and-Mint Design

Onocoy uses a two-token system:

• ONO: Tradeable, utility token with capped supply.

• Data Credits: Non-transferable, pegged to fiat, used to access data.

🔁 Conversion Flow:

1. Users buy ONO (from exchange or elsewhere).

2. They swap ONO for data credits (at a fiat-equivalent price via an on-chain oracle).

3. When data credits are used (burned) to access correction data:

   • A portion of the ONO used is burned 🔥 (deflationary).

   • A portion goes to a reward pool (miners/validators).

   • A portion funds ecosystem development.

This creates a deflationary pressure on ONO and aligns economic incentives.

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📈 Inflation / Emission Design

The ONO token uses a deflationary emission model with halving, inspired by Bitcoin:

Feature	Design
🪙 Total Supply	Capped at 810 million ONO tokens
🔄 Emission Schedule	New tokens are released over time with a 16% annual deflation (i.e., a 4-year halving schedule)
⛏ Mining Rewards	Miners and validators receive newly minted ONO for network operation
🔥 Token Burns	ONO is burned when swapped for data credits, reducing supply over time

This design aims to:

• Reward early adopters

• Prevent long-term inflation

• Promote token value appreciation over time

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📊 Token Allocation (810 million ONO)

Group	Allocation	Notes
🎯 Community Rewards (miners, validators)	40%	For operational incentives
🌱 Ecosystem Fund	22%	Development, grants, maintenance
💼 Investors	24%	Subject to lock-up and vesting
👥 Team	10%	Locked and vested
💹 Liquidity & Market Making	4%	To ensure healthy market trading

Tokens for team/investors are vested monthly to reduce selling pressure and encourage long-term commitment.

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🧠 Governance Utility

Holders of ONO can:

• Propose and vote on system upgrades, funding allocations, reward adjustments, and validator policies.

• Participate via anonymous delegation using square-root voting (i.e., voting power increases with the square root of holdings — a Sybil-resistant design that limits whale dominance).

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🧠 TL;DR: ONO Token Utility & Design

Aspect	Summary
🛠 Utility	Rewards, data access, governance
💱 Swap System	ONO → data credits → access GNSS data
🔁 Token Model	Burn-and-mint deflationary model
🔥 Supply Design	Capped + halving schedule + token burns
📊 Allocation	40% community, 24% investors, 22% ecosystem, 10% team
🗳 Governance	Square-root voting + delegated proposals